It’s not a false dichotomy at all. There is a finite set of resources that can be deployed at any given time. $1 spent on a laptop is $1 that isn’t going to medicine. This usually a curve rather than a straight line (so usually you’re better off with some combination of both), but this doesn’t really apply to a situation where your limiting factor is dollars rather than the factors of production.
You're building your arguments on a false premise, that ALL resources are distributed from some magical mutually exclusive abstract bucket. While it's true when applied to some slices of reality (be it on micro or macro levels) it isn't true in general, where it's parallelized, distributed, discrete and largely independent instead.
Doing it your way would inherently lead to socio-cultural diversity collapse.
Which is what's actually happening currently, not due to failure of distribution, but due to resources being siphoned and accumulated by hostile entities.
There actually isn't a finite set of resources when we're talking about human capital. Motivation and inspiration and incentive come into play, and as it happens different people are inspired to work on different things.
